Industrial Corridors recognize the inter-dependence of various sectors of the economy and offer effective integration between industry and infrastructure leading to overall economic and social development. Industrial corridors constitute world class infrastructure such as high-speed transportation (rail, road) network, ports with state-of- the-art cargo handling equipment, modern airports, special economic regions/ industrial areas, logistic parks/transshipment hubs, knowledge parks focused on feeding industrial needs, complementary infrastructure such as townships/ real estate, and other urban infrastructure along with enabling policy framework.

Industrial corridor provides opportunities for private sector investment in the provision of various infrastructure projects associated with the exploitation industrial opportunity. However, the successful utilization of opportunities that arises from industrial corridors depends on availability of efficient transport and other infrastructure support systems. Corridor approach for industrial development primarily takes advantage of the existence of proven, inherent and underutilized economic development potential within the influence region.

Apart from the development of infrastructure, long-term advantages to business and industry along the corridor include benefits arising from smooth access to the industrial production units, decreased transportation and communications costs, improved delivery time and reduction in inventory cost. The strategy of an industrial corridor is thus intended to develop a sound industrial base, served by world-class competitive infrastructure as a prerequisite for attracting investments into export oriented industries and manufacturing.